Please ensure Javascript is enabled for purposes of website accessibility

Wendy's Offers Free Food, Guarantee to Lure Breakfast Customers

By Daniel B. Kline - Mar 5, 2020 at 10:15AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The chain is pulling out all the stops.

Wendy's (WEN -1.55%) knows that changing consumer behavior can be incredibly difficult. It has tried and failed to launch breakfast before and the chain wants to make every effort to have its latest attempt at the morning meal be successful.

To make that happen, the company has not only decided to offer free food to customers, it's also guaranteeing their happiness.

A person puts a Wendy's bag into a Doordash delivery bag.

Wendy's breakfast can be delivered as well. Image source: Wendy's.

What is Wendy's doing?

The fast-food chain is offering a free Honey Butter Chicken Biscuit with any breakfast purchase. That offer can be found in its app. In addition to offering free food, Wendy's is also offering a guarantee.

"If you somehow don't love something we make you, we'll exchange it for free," the company said on its website.

Exchanges must happen by 10:30 a.m. the next day and they require a receipt. The chain will change like items -- i.e. a side for a side or a sandwich for a sandwich.

Why is Wendy's doing this?

Becoming a player in breakfast will improve the chain's bottom line. Being open for more hours gives each location a chance to make money without significant cost increases aside from the labor required to serve the morning meal.

The biggest challenge Wendy's faces is getting customers through the door, especially when rivals like McDonald's are trying to derail its efforts. Offering a guarantee and giving out free food increases the odds that customers will at least give the chain a chance. Wendy's is betting that if people try the food, they will like it and come back.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Wendy's Company Stock Quote
The Wendy's Company
$19.69 (-1.55%) $0.31
McDonald's Corporation Stock Quote
McDonald's Corporation
$251.46 (-0.33%) $0.83

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.